The Automobile Insurance Claim Settling Process

The cost to reset airbags makes total losses of most older cars.

In America alone, there were 5.8 million automobile accidents in 2008, per the U.S. Bureau of Transportation. Odds are you will be in at least one car crash in your lifetime. Report the accident immediately to the police and to your automobile insurance company. Your insurance should assign you a liability adjuster who investigates the accident and then advises you who to settle with: your insurance or the other driver's. The other driver's adjuster will investigate as well, so don't be surprised when she contacts you. Ask your adjuster or your attorney if you should answer her questions.

Instructions

Car Claim

1. Tow or drive your car to a shop right away and tell your adjuster where it is.

2. Ask your adjuster if the shop can repair your car, or if the adjuster will total your car. This depends which costs more: your car or the repairs, as verified by the National Association of Insurance Commissioners on page 3 of their consumer guide to auto insurance.

3. Read the repair estimate, negotiate whatever changes you prefer and then authorize the repairs.

4. Examine the repairs, have the shop fix any flaws and then approve the repairs.

5. Present your receipts for towing, car rental and other non-injury, accident-related expenses to the adjuster. Your reimbursement for these depends on who caused the accident and how much insurance that driver has. The Financial Services Commission of Ontario, Canada explains this on pages 9 to 12 in its PDF file about the auto claims process.

6. Compare your adjuster's offer against the newspaper-asking price of similar cars, if your car is a total loss.

7. Negotiate a final settlement with the adjuster, if your car is a total loss. Point out your car's good condition and maintenance record, to help get more money for your total loss.

Injury Claim

1. See a doctor immediately if you were hurt. Follow the doctor's orders and keep any follow-up appointments. Get a written off-work order, if your doctor takes you off work.

2. Demand that your adjuster sends you, in writing, the statute of limitations date that you must settle by. Do not let this date go by without settling your injury claim. Get reimbursed for all your accident-related injury expenses that the insurance covers, before this date.

3. Send receipts, bills or estimates to the adjuster for all injury expenses related to the car accident. You might have to pay these and get reimbursed, or the adjuster might pay them, depending on the type of automobile insurance that covers your injury claim.

Tips & Warnings

• Some jurisdictions allow you to claim expenses for domestic help as part of your injury claim, as observed on page 2 of Willis Australia Limited's injury claim form.

• Ask the responsible driver's adjuster to forward your deductible to your shop, if you settle your car claim with your own insurance.

• Settle your claim before your jurisdiction's statute of limitations time runs out or you lose your right to settle the claim.

• Make sure all your expenses are included before you sign any release which says you cannot claim anything more.

• Do not delay seeing a doctor, or the adjuster might question your injury's association with the accident.

• The responsible driver might not have enough insurance to cover your claim, so you might have to cover it yourself.

References

• Bureau of Transportation Statistics: Table 2-17: Motor Vehicle Safety Data
• NAIC: A Consumer's Quick Guide to Auto Insurance
• Financial Services Commission of Ontario: After an Auto Accident: Understanding the Claims Process
• Willis Australia Limited: Personal Injury Claim Form for Club Members